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Arista Networks (ANET) Rises Higher Than Market: Key Facts

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Arista Networks (ANET - Free Report) ended the recent trading session at $385.57, demonstrating a +0.29% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.28%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.15%.

Prior to today's trading, shares of the cloud networking company had gained 8.26% over the past month. This has outpaced the Computer and Technology sector's loss of 0.02% and the S&P 500's gain of 2% in that time.

The investment community will be closely monitoring the performance of Arista Networks in its forthcoming earnings report. The company's upcoming EPS is projected at $2.08, signifying a 13.66% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.75 billion, indicating a 16% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.24 per share and a revenue of $6.8 billion, signifying shifts of +18.73% and +16.07%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Arista Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Arista Networks is carrying a Zacks Rank of #2 (Buy).

Digging into valuation, Arista Networks currently has a Forward P/E ratio of 46.63. This represents a premium compared to its industry's average Forward P/E of 22.42.

We can also see that ANET currently has a PEG ratio of 2.71. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Communication - Components industry currently had an average PEG ratio of 2.71 as of yesterday's close.

The Communication - Components industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 18, positioning it in the top 8% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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